Chinese government unfairly subsidizes OTR tiremakers, say feds

Dec. 13, 2007

The United States Department of Commerce has made a preliminary determination that Chinese OTR tire manufacturers have received subsidies from the Chinese government ranging from slightly more than 2% to around 6.5%.

As a result, the Department of Commerce will instruct U.S. Customs and Border Protection to collect a cash deposit or bond based on those rates.

"If Commerce makes a final determination that Chinese producers/exporters have received countervailable subsidies in this investigation, and the U.S. International Trade Commission makes a final affirmative determination that imports from China materially injure -- or threaten material injury to -- the domestic industry, Commerce will issue a countervailing duty order."

The Department of Commerce's investigation was initiated in response to petitions filed jointly by Titan International Inc. and the United Steelworkers six months ago.

Titan and the union accused Chinese OTR tiremakers of dumping their products into the U.S. marketplace.